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Daily demand for a product sold at a store follows a normal distribution with a mean of 16 units and standard deviation of 4 units.

Daily demand for a product sold at a store follows a normal distribution with a mean of 16 units and standard deviation of 4 units. The store pays $100 for each unit. Fixed costs of replenishment are $36.5. The accounting department recommends a 20% annual holding cost rate. Assume that the average lead time is 9 days with a standard deviation of 1 day. Assume 365 days a year. Part A: What is the EO?

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